tv CNN Money CNN September 13, 2014 11:30am-12:01pm PDT
apple disresulted music with the ipod, revolutionized commun communes, and are credit cards next? this is "cnn money." ♪ new iphones, a smart watch, a credit card killer, are any of the game changers, the rich get richer, and we buy cat food. i'll explain. from geek to chic. why technology is the star of new york fashion week. right now, the top five money stories of the week, and this week, all about apple, one of the most ambitious product launches in the company's history. they are bigger, rounder, and faster. could disresult the way we boy buy and a smart watch doing more than any other watch on the market today. is it truly revolutionary? we have our panel today.
sam, people talked about the smart watch for two years, two years, now it's here. is this the device to push wearles to the mainstream? >> just like in a relationship with somebody, sometimes it's the things you don't say that speak the loudest, and apple had some glaring omissions at this big event that they still have not answered, mainly the battery time for the watch. they said how long the battery on the iphone 6 lasts, but did not say about the watch. i wonder one in three people abandoned wearable tech after six months of buying it, and one of the reasons was the battery. i wonder about that. they did not talk about the fringe the print technology for your phone. the watch does not have that. somebody grabs my watch, $349, are they going to buy whatever they want and go on a shopping spree? >> i feel it's redundant. people run with their phones, clothing made to stash jr. phone. this is -- is it redundant? >> it could be in some respects. with regard to the battery
issue, there's time to work it out, the product does not come out until 2015, will not be ready for the holidays, and with regards to the payment process, the hope has got to be if they swipe your watch, you are okay unless they steal your phone too. they are linked together. the demo, how easy it is to pay for things, if they live up to the appropriatipromise, there's. apple has an impressive list of retailer rs and big banks signed up. >> chase said, look at apple pay. they got the partners. >> we don't know how they'll respond to apple pay and the watch, but we know already there's a tremendous response for the new phones, right? the site crashed because people are trying to preorder the foechb. it's clear. you mentioned is apple revolutionary? well, is that the focus of the company? i think that apple is concerned about holding on to the premium
k customer, making that customer happy and fearful they were falling behind because they lacked the larger screen a lot of premium customers wanted. now they are delivering on that. that could be a huge -- >> finally. >> that could be a huge deal for apple. >> steal android customers here possibly. >> fat margins? >> to your point, top of the line phone is a hundred dollars more than the last top of the line phone. it's a bigger screen, but they are not going after the price sensitive customer. a lot of interest on apple. we'll see how it plays out. could be a record next week, biggest public offering of all tile, alibaba, it's a mix of amazon, e bay, and paypal, the chinese version, and could raise $24 billion. that would top visa's ipo in 2008. would crush facebook in 2012. alibaba customers and operations in china. it's not a household name in the
u.s. what is it? why should we care? it's huge. >> it is, but to your point, it's a cocktail of all the companies you mentioned, plus a couple chasers, right? they got a mapping app. they are getting into social media. they are trying to get people to buy mutual funds on their platform. it's much more than what we think of in the u.s. with amazon and paypal. why important to u.s. -- the u.s.? well, it's basically because you might end up with a piece of this company inside your investment fund, and you don't know it. >> but my big question, though, you talk about here in the u.s., have you purchased something from alibaba? >> absolutely not. >> you? >> nope. >> you are smart shoppers. i tried to do t. it was chinese to me, literally, the site is not translated in english, and you get to the one in english, it's difficult to buy something. not that greats. >> jack, it's a name we can say. >> you have to trust jack. investors are going to. >> excellent.
radio shack, are they getting radio whacked? burning through cash, burning through cash, actively seeking a financial lifeline. bankruptcy filing could be in the future. losses more than doubled in the latest quarter, stock fell below $1 a share. paul, 78 years ago. even ceo can't figure out how radio shack is still in business. that was 2007. are they doomed to remain a punch line? >> sadly, i think so. >> you got one. >> joked often if you have the name "radio" that's not a good sign in 2014, shack is not betters in you're shake shack, and they might be going public. radio shack, they know that they are dated age stale and make fun of it in a super bowl commercial this year, which you wonder, should they have spent the cash for that pricey ad even if they get financing in the short term, they need customers and strategy. >> they need to shut down this
massive break and mortar -- >> all in malls, not getting the traffic they used to, it's a location issue, a customer issue. >> right. >> it's a financing issue now. >> it is. but it seems like there are investers and lenners there willing to back the company ironically. you got to scratch your head here. how much room does the company have? >> where do they go to return the product now? that's when they use it for. buy it on amazon, and wait for it to arrive, go to radio shack, and then return it. >> so true. how do you fix that broken model? we'll see. speaking after broken business mod pell, in trouble, the company that runs the trump that taj mahal files for bankruptcy. another casino closes this month. and donald trump built them but now they just license his name. we saw revel close last week,
show boat in late august. is it done as a gambling destination? >> pretty much been a failure. in 2006, talking about revenue of $5 billion. it's half of that now. it probably declined further from here. what happened was they -- new jersey knew that neighboring states were going to legalize gambling. they did not get in front of it fast enough to transform it into an entertainment hub other a convention hub. think how close it is to the city. you could have easily -- >> got a lot of convention business. >> all ingredients. >> only one casino that's cool there, and that's the brigada, the biggest liked destination. >> the cool factor, right? it's a marketing campaign. casinos in vegas say it's the right amount of wrong, and then you got do ac? what's that mean. >> what's it mean to trump, is it a hit? >> he's running away from his name. like you mentioned he does not have a business stake, ju 5% of
stock snt companies, but once again he's running away from trump. his own name. >> i know, i think -- >> make a profitable new jersey, trump, if you're watching. >> a challenge from paul. meantime, this story got my attention this week. rich get richer, and cat food for everyone else. top 3 % of american hold holds control the nation's wealth. at the same time, less than 14 percent of u.s. families own any individual stocks. in this country, more people own cats than stocks, cat ownership is at 30%. no wonder why there's a wealth gap in america. >> this is my generation, i'm 28. so many of us are parents' portfolio hit in the great recession so afraid to put money in stocks. soed sad. we're using the tech products and no it will be profitable. i saw the ads on facebook. they will make a tochb money. there's ads everybody where. it's a missed opportunity. >> it's not a cat or stocks.
buy what you know. research some cat sort of companies. you know? i don't know. purina? >> pet insurance, lots of way to invest. all right, thanks, guys. coming up, wearable technology fashion's problem, apple's watch grabbed headlines, but will anyone wear the stuff? intersection between fashion and tech is next. whenwork with equity experts who work with regional experts who work with portfolio management experts that's when expertise happens. mfs. because there is no expertise without collaboration.
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fashion. >> can you make the bag say hello to me? >> yes. >> the idea? take wearable technology from geek to chic. >> we have an app on the phone currently connected with this, and choose any pattern you want. >> this is the notification bracelet, certain contacts, is vibrat vibrates, then you know if it's your mom, husband, or baby sitter, and this is the charger. >> there is a usb connected right here, do your charging. >> we designed it to be a communication accessory so your e-mails, smss, and social feeds. >> reporter: miles from the runway, other designers show off what they got. bags, bracelets, even connected rings. >> actually customize which notifications you want through, facebook, uber, turn them off on on. >> if i only want my boss to
contact me, i can? >> exactly. >> oh, it's vibrating. >> reporter: 19 million wearable tech pieces shipped this year. in four years, that's expected to surge to nearly 112 million and become a $20 billion industry. >> the customers seam leslie transition between fashion and technology. >> we just started dreaming of things we thought she'd need and incorporate things that they always run out of charge, like, hey, can we incorporate that into a bracelet? >> okay, let's go. some say this market is young. >> i would say it's virgin, in terms of the development of design, but it's a massive step forward compared to the very clunky technology developments had from the past. >> but does it have a ways to go? >> i believe so, personally. >> yowhy? >> you can still very much see they are a piece of technology.
>> reporter: another hurdle? will people wear it? this is a solar powered dress that charges your phone. >> i would stand out in this. >> get the right shoes with it, ready to go. >> would you wear it? >> no. >> why not? it charges your phone. >> so will my charger. >> looks cool. >> except it's boxy. >> reporter: designers are confident. >> bringing this digital aspect to fashion, and it is going into the future. >> we're going to see fashion and technology fuse in ways we can't even imagine. >> markets will be big. >> reporter: the key? make fashion first. >> these beautiful, tech enable the beauty. chose to start with really the beauty side. >> joining me now, does the dress make me look like a solar panel? >> actually, yeah. >> apple this week may be a game
changer with the apple watch. that's the new piece of technology in the field. ? that's right. this apple watch could be a game changer because it not only opening the thought of wearable technology to a small group, but masses as well. there's a hurdle. how to make it functionalble and fashionable as well. one says this apple watch is not -- it's not sexy feminine. it's really masculine, but one analyst telling me, look, this apple watch will be thee best selling watch of 2015, yet he told me he will not be buying it for his wife any time soon. >> all right, great reporting, thank you. coming up, new iphones, they are sleek. apple watch is cool. apple pay could change how you spend your money, but is it safe? that's next.
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is it time to cut the credit cards? most millennials do not have them, and 63% of americans do not own a single credit card. prepaid debit cards are their style, but forget plastic of any kind. apple wants you to leave the wallet at home and pay for everything with your iphone6. the big question? is it safe? jose takes a look. >> reporter: since when is the wallet being thin a good thing? welcome to the future brought to
you by apple. >> that is so cool! >> reporter: the new iphone6 has something called apple pay, letting you store and use your credit cards just by scanning your phone. with technology that sends your payment to your phone to the register, it's call the nfc. stands for mirror cool communication. it's an antenna inside the phone that delivers short encrypted radio waves with your payment data. it's been around for a while. it's used on google wallet, paypal, and a few other services. is it safe? well, turns out that it's a lot safer than the credit cards used today, and it's harder to steal data. for one thing, your phone does not give out your credit card number, but creates a one-time use code that gets approved by the bank for every transaction. that code on the back of the credit card? that changes with every transaction too, so even if hackers hack their way into a store and grab this payment
data, it's useless to them because each code can only be used once. plus, even if someone steals your phone, you can actually wipe all the credit cards off of it remotely. you can't do that with a wallet. use the wallet, you call the bank for each and every card to cancel that card. while it's difficult for celebrities like kate upton and jennifer lawrence to trust apple right now, turns out, apple and nfc are safer ways to pay than plastic. >> another reminder this week of how unsafe the current payment system is. home depot confirmed a hack, and we broke the story when a huge batch of stolen data turned up in the cyber crime underground. as many as 60 million cards could have been compromised. discovering the target hack from last year, that hack hit 40 million kacards. i asked, if you shop at home depot this summer is your information for sale on the dark
web? >> if it's not yet, it will be soon. i think it's good likelihood of that, yes. >> should the company have known? should they have known, given that every month this year, basically, we've had a huge hack. aren't they monitoring the dark web like you are? >> well, so, yeah, i mean, it's difficult to say what they should and shouldn't have known. there are -- i don't know that the companies are monitoring the dark web. certainly law enforcement, the banks are, but, certainly, a lot of people will be asking the question, you know, what, if anything, did home depot learn from this target breach since pretty much everything is almost exactly like the target breach from the malicious software used to the site that these stores ended up for sale on. even to the reporter who tells the world about it. >> do you think americans are just so tired of hearing about these hacks that they are losing
the outrage? >> i think there's a little bit of that for sure. i think that's a fair criticism. unfortunately, it does not change the reality on the ground for these companies, be they retailers or fortune 100 companies. the fact is that if the discussion about security, about the stuff that matters, about the things that impact the company's bottom line when they are exposed, if that discussion is not driven from the top down, from the board level, you know, the companies are going to eventually have one of these problems. >> more to come on this, no question. all right. coming up, princeton, harvard, and yale, are best schools in the country. the grads do not make you the most money. the colleges that make the most when you graduate and the little thing they all have in common next. [alex] when i put my feet up on this bed, my stress just goes away.
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you guessed it, the ivy league has the best schools in the country. again, princeton at the top of u.s. news and world report annual rankings followed by har voir dire, then yale. for everyone elsz, another ranking to consider? the colleges with the highest paid graduates. a new report from pay scale finds harvey mud grads urn the highest salaries in the country. they start right utility of college 75,000 a year. they make about $133,000 mid career. in the top five? the u.s. naval academy. mitt, colgait, stanford.
colleges with the highest grads have something important in common. they grant a large number of stem degrees, science, technology, engineering and math. mudd's degrees are? stem. no surprise, 79% at mit. you know, but a four year degree is not for everyone. pay scale looked at two year colleges and their earnings potential. how does $70,000 sound? roughly how much people with associate degrees from these schools make by the time they're in the middle of their career. public schools. in general, two year public college grads made more money than private two year programs. you don't have to remark up a ton of debt. you don't have to breathe the rarefied air. be smart where you go, smart about what you study, and your investment in higher education will pay off. thanks for watching "cnn money," here every saturday at 2:30 p.m.
eastern. set the dvr please. check us out on cnnmoney.com. if you are retiring, i have a check list you can't afford to miss. check it out. have a great weekend. ♪ >> you are in the cnn newsroom, i'm randy kay in new york. america's top diplomat overseas today selling the idea of u.s. military action against isis to as many arab leaders as will listen. according to the state department, john kerry is asking for support, and he's getting it. this is kerry, meeting with egypt's president today, also been in turkey and saudi arabia on the trip. kerry's message to the leaders is this, the fight against isis is not religious, and it's an effort that the entire world should get behind. >> the bottom line is that terrorists like